Tuesday, September 16, 2008

AIG Downgrades

AIG downgraded from AA to A. This of course increases the amount of capital they need to raise.


Omer said...

The Fed just effectively nationalized AIG! Any thoughts?

ALD said...

Not too much of a surprise, actually. What is most worrying is that Monday morning Treasury and Fed said no-way on a bailout, and 36 hours later they are lending $85B. What exactly did they see on AIG's balance sheet that scared the pants off them?

I must say it is pretty punitive terms. AIG is going to be sliced and diced like a lechon at a Cuban Christmas Eve party. If it's sold quickly enough, we (the taxpayers) may avoid most of the pain on that one.